IRS now accepting tax returns

By Jonnelle Marte

Ready, set, file! Today is the first day that the Internal Revenue Service is accepting electronically filed returns.

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While there are a number of tax changes being rolled out this year, such as the premium tax credit to help lower health insurance costs and the elimination of some popular tax breaks, tax pros say preparing 2013 returns should mainly be business as usual. Still, taxpayers should be sure to check if they qualify for any of the tax deductions and credits that just expired and won’t be available next tax season, says Mark Steber, chief tax officer at Jackson Hewitt Tax Service: “A whole bunch of things are going away after 2013.”

On the list: the ability to write off up to $4,000 in higher education costs and the option to deduct state and local sales taxes instead of state and local income taxes. (The IRS offers a calculator here to help people estimate the size of their sales tax deduction. ) As MarketWatch contributor Bill Bischoff recently noted, Congress could still act to reinstate these tax breaks retroactively, but any action is unlikely to happen before the November elections.

The majority of Americans are likely to crunch the numbers with the help of a pro: Roughly 60% of individual tax returns are filed by a tax preparer, according to data from the IRS. That breakdown that has barely budged over the past 10 years, even with recent improvements in tax preparation software, largely because many tax filers are worried about preparing their returns incorrectly or not paying the right amount in taxes, experts say.

The start date of this year’s filing season was pushed back by 10 days so that the IRS would have enough time to update its processing systems following last year’s 16-day government shutdown. But taxpayers shouldn’t expect any extra time—taxes are still due April 15.

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About Tax Watch

Only two things in this world can be said to be certain, according to Benjamin Franklin. Tax Watch is about one of them. The blog examines the complicated tax issues and legislative changes to help you tackle tough personal finance challenges – and avoid costly tax missteps. The lead writer is MarketWatch reporter Jonnelle Marte. Contributors include columnists Bill Bischoff, Andrea Coombes, and Eva Rosenberg.